In This Article:
It’s a quiet day for the Pound, with no economic indicators due from the UK for the markets to consider.
The lack of stats will leave the Pound in the hands of market risk sentiment throughout the day.
While there are no economic indicators to consider, Bank of England speeches will draw interest. Monetary Policy Committee member Jon Cunliffe will speak later today.
Cunliffe is due to deliver remarks ahead of a conversation with Perry Warjiyo, the Governor of the Bank of Indonesia, at the Indonesia Digital Economy and Finance Festival ‘A Vision for Future Digital Cross Border Payment.’
However, comments on the UK economic outlook and monetary policy are unlikely, with the focus on cross-border digital payments.
GBP/USD Price Action
At the time of writing, the Pound was down 0.41% to $1.18408.
This morning, the Pound rose to an early high of $1.18925 before sliding to a low of $1.18354.
The Pound left the Major Support and Resistance Levels untested early on.
Technical Indicators
A move through the $1.1894 pivot would bring the First Major Resistance Level (R1) at $1.1962 and the Wednesday high of $1.19668 into play.
The GBP/USD pair would need a marked pickup in risk sentiment to support a breakout from $1.1950.
In the event of an extended rally, the GBP/USD pair would test the Second Major Resistance Level (R2) at $1.2034.
The Third Major Resistance Level (R3) sits at $1.2174.
Failure to move through the pivot would leave the First Major Support Level (S1) at $1.1822 in play.
In case of an extended sell-off, the GBP/USD pair could test support at $1.18 and the Second Major Support Level (S2) at $1.1755.
The Third Major Support Level (S3) sits at $1.1615.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal.
At the time of writing, the Pound sat below 50-day EMA, currently at $1.19606.
The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA: GBP/USD negative.
A move through the 50-day EMA and R1 would target the R2 and the 100-day EMA, currently at $1.20538.
The US Session
Weekly jobless claims and wholesale inflation figures are due later today. The stats will draw interest following the pickup in consumer price inflation in June.
This article was originally posted on FX Empire